Taxation of Business Entities: Chapter 1 Study Questions

May 26th, 2016
Studypool Tutor
Chabot College
Price: $5 USD

Tutor description

Chapter 1 Tax Research

Word Count: 3635
Showing Page: 1/14
TAXATION OF BUSINESS ENTITIES, CHAPTER 2 QUIZ1.John and Mary each exchange property worth $50,000 for 100 shares of NewCorporation stock. Peter exchanges services for 98 shares of New stock and $1,000 in cashfor two shares of New stock. Are the Sec. 351 requirements met? Explain why or why not.What advice would you give the shareholders?1. The Sec. 351 requirements are2. not met3. met4. not met5. because6. Peter is not7. Peter is8. Peter is not9. considered a transferor of property.10. John and Mary are11. John and Mary are12. John and Mary are not13. deemed to have transferred property and, since they own14. only 2/3 of the stock, they are not in control.15. 2/3 of the stock, they are in control.16. only 2/3 of the stock, they are not in control.What advice would you give the shareholders? (Select all that apply.)A. The shareholders might have Peter provide fewer services and a smaller amount of cashto the corporation and still receive 100 shares of stock.B. The shareholders might have Peter provide fewer services and a larger amount of cash tothe corporation and still receive 100 shares of stock.C. The shareholders might restructure the transaction by having Peter provide more servicesto the corporation and take less shares of stock.D. The shareholders might restructure the transaction by having Peter provide a largeramount of cash to the corporation and take more shares of stock.2. Why might shareholders want to avoid Sec. 351 treatment? Ex

Review from student

Studypool Student
" Awesome! Exactly what I wanted. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors